Posted by BillW. on February 13, 2001 at 18:43:18:
Alder, You need to post this on the mobil home board.
Just a question though. If they only owe 8000 and the payments are 570 per month for 8 more years, thats $54,720 dollars. What doesen’t fit here?
BillW.
Who Can Help?? - Posted by Alder Jackson
Posted by Alder Jackson on February 13, 2001 at 15:40:53:
I just got my first motivated seller and they have a mobil home. It is a two bedroom and they have 3 kids and they just need more room. They have a 10 year loan on it with payments of $570 and they have been there for 2 years. They owe about $8,000 And they say it is worth about 8,500.
Now the part that I am excited about is that they just want out of this house. They don’t want any money down or anything.
I thought about a lease option but the problem is that the park management runs credit checks and they screen the buyers of these homes.
I thought with a lease option I could just take control of the property and then sub lease but now I have to be screened buy the parks management. What is the best way to make a little profit off of this deal.
Re: Who Can Help?? - Posted by Brent_IL
Posted by Brent_IL on February 13, 2001 at 19:02:40:
Not every no-money-down deal should be done.
From the seller’s point of view, they are giving up $500.00 of equity (based solely upon their opinion) to eliminate $570.00 a month. Good for them.
Does the $570.00 include the lot rental? It seems to be very high for a ten-year loan in this range. Is there an existing sales or rental market for this kind of trailer that allows you to charge even more?
The first thing I would do is to refinance the $8,000.00. The payment on a 120 / 8000 / 18% loan is $144.15. You won?t need to pay as much, so it may be possible for your renter/buyer to pay less, while still maintaining your profit margins.
You may be able to approach the park management about assuming personal responsibility for your tenants/buyers by substituting your credit for theirs. This transfers the risk to you. In exchange, you get whatever profit is available.
I can see the benefits to the seller, and the park management. I?m less clear about the benefit to you to do this deal.